CLACKAMAS REGIONAL WATER SUPPLY COMMISSION

Transcription

1 CLACKAMAS REGIONAL WATER SUPPLY COMMISSION CLACKAMAS, OREGON PROPOSED BIENNIAL BUDGET FISCAL PERIOD

2 TABLE OF CONTENTS Budget Committee Members 1 Budget Calendar 2 Budget Message 3 Biennial Operating Plan Fiscal Period General Fund: Summary 8 Resources Detail 9 Requirements Detail 10 Supporting Budget Documents BN Budget to Actual through February 29,

3 BUDGET COMMITTEE MEMBERS BIENNIAL BUDGET Board Members Ernie Platt, Chair Hugh Kalani, Vice Chair Deanna Boast, Secretary Namoi Angier, Treasurer Ron Blake Ken Humberston Appointed Members Representative from Clackamas River Water Bill Blanas Pat Russell Cyndi Lewis-Wolfram Representative from Sunrise Water Authority Randy Ealy Markley Drake Eric Hofeld - 1 -

4 BN Budget Schedule Approved Budget review and adoption schedule: Budget Committee includes Board of Commissioners *February 2, 2016 (Regular Board Meeting) Board appoints Budget Officer (by resolution) Schedule date for Budget Committee meeting(s) (by motion) Regular Meeting in April Schedule date for Budget Hearing - Special Meeting required in June March 30, 2016 (Publish notice not more than 30 days before meeting and post on SWAs & CRW s website for not less than 10 days or publish two notices) Publish Notice of Budget Committee Meeting Publish notice on SWA s and CRW s web sites April 4, 2016 Distribution of Proposed Budget to Budget Committee members, copies available for public (proposed budget can be provided the night of the meeting) *April 11, 2016 (Regular Board Meeting) Board appoints Budget Committee citizen members (by resolution) Budget Committee meeting Receive the budget message, approve budget or schedule additional meetings if necessary April 14, 2016 CRW Regular Board Meeting or May 12, 2016 (if necessary) Board approves CRWSC approved budget for BN April 27, 2016 SWA Regular Board Meeting Board approves CRWSC approved budget for BN May 25, 2016 (publish notice 5 to 30 days before hearing) Publish Notice of Budget Hearing and Budget Summary Include notice on SWA s and CRW s web sites *June 13, 2016 (Special Board Meeting) Budget Hearing for BN Adopt Budget for BN by Resolution July 15, 2016 Submit Adopted Budget document to State and other agencies *meeting of the Board of Commissioners or Budget Committee - 2 -

5 April 11, 2016 Budget Message Dear Members of the Budget Committee: We are pleased to present the Clackamas Regional Water Supply Commission (Commission) the proposed budget for the biennium This is the second biennial budget for the Commission. This budget totals $2,385,300 for the next two years. During the Commission s inaugural operating period, BN , the primary goal was to identify opportunities for sharing labor and material and services between the member agencies that would result in the greatest impact, as well as fostering interagency cooperation at the operational level. This budget continues with this primary goal. This budget includes the wholesale water Clackamas River Water (CRW) provides to Sunrise Water Authority (SWA). SWA is budgeted to purchase 2.5 MGD with a small increase in wholesale rates. The Commission has an agreement for SWA to purchase up to 10 MGD with 2.5 MGD as a minimum. Wholesale water sales and purchases is $1,646,000 or 69.0 percent of the budget. This is an increase of 4.1 percent over the prior budget. This budget continues with the sharing of labor for specialized services under a basic reimbursement structure covering the direct and indirect cost of borrowed or loaned labor between the agencies. Total labor resource sharing is $540,400 or 22.7 percent of the budget. This is an increase of 44.7% over the prior budget. This increase is made to allow for continued expansion of shared resources over the next two years. This budgeted includes labor resources for: Water quality through water sampling for testing and system flushing Procurement and contract management support Board support Government relations liaison Engineering services and hydraulic modeling support SCADA technician support - 3 -

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7 Biennial Operating Plan Biennium Coordinated Operating Plan It is important to note the following is intended as a means to highlight key shared resources among the two agencies and illustrate areas of critical coordination within a combined organizational structure. Labor resources in these areas would be shared under an agreed cost structure (i.e. direct and indirect costs). The planned activities for each unit are outlined below. Customer Service The customer service units within each organization would remain intact, preserving the on-going relationship established among the respective agency s customer base. Current level includes no resource sharing and none is planned during this budget period. There are limited staffing resources at each agency and separate billing/customer service software platforms, making resource sharing difficult. Field Operations The field operations staff of each agency would remain under separate guidance and control of each agency, while continuing to operate and maintain the distribution and service system for their respective jurisdictions. There are, however, several specialized functions between the two groups that are being shared including: pump station maintenance, cross-connection (backflow) testing and reporting, and emergency preparedness planning. This function has also shares heavy equipment and other specialized equipment under approved rental agreements. The current budget supports on-going sharing at existing levels, including pump station maintenance and emergency preparedness planning. Administration The administrative services within both agencies has looked to leverage key labor resources associated with Executive Assistance; Human Resources; and Government Affairs. In addition, the two agencies have been working toward common best practices related to Records Management and attempt to develop a unified approach for records storage and retrieval. The current level includes resource sharing for Government Affairs, Executive Assistance, Human Resources and common Records Management

8 Finance and Accounting The two agencies will continue to maintain separate general ledger accounting records, along with all supporting fund accounting and related record keeping. However, the two agencies have looked to develop similar ledger assignments and examine shared payroll and A/P handling services. Moreover, to the extent available, plans have looked to optimize staff utilization among this function in the conduct of each agency. Notwithstanding, the financial obligations (i.e. payments, debts, fund balances, etc.) will remain separate property and responsibility of each agency. The current level includes resource sharing at the Chief Financial Officer level and among staff work assignments. Water Resources The staff and resources in this function are largely associated with CRW s treatment plant operations and its laboratory. This function, however, also operates and maintains a water quality testing lab. The on-going activities here have developed shared (periodic) sampling and reporting of various water quality parameters, particularly within each agencies distribution system. Staff and laboratory resources in this function have been optimized to maximize utilization and coordinate dual (simultaneous) sampling and reporting efforts. The current level includes support to continue the resource sharing as outlined. Technical Services The staff and resources in this function cover Engineering, IT and related activities. The Engineering staff have been working on coordinated hydraulic modeling, capital planning and design standards, including drawing standards under a unified CAD platform. Moreover, efforts have already been conducted to develop coordinated GIS/Mapping services and future steps would look to develop combined mapping resources under a unified GIS platform, from which similar coordination would be targeted for future asset management including asset inventorying, depreciation (renewal and replacement) scheduling and tracking. The current level includes support to continue the resource sharing as outlined. In addition, IT services have been coordinated to optimize facilities and resources between the two agencies. The agencies have taken steps to share hardware and software environments, including servers, routers, security, and internet services. In addition, efforts have been taken to develop coordinated remote controls under a unified SCADA platform (particularly for the distribution systems). The current level includes resource sharing as outlined with the addition of server hosting and monitoring by CRW. Work has also been on-going to develop coordinated Emergency preparedness plans for the two agencies and to establish a unified Continuity of Operations Plan for postemergency operations. The current level includes continued resource sharing within this budget

9 Draft Coordinated Services Strategy Clackamas River Water Board of Commissioners CRWSC Board of Directors Sunrise Water Authority Board of Commissioners General Managers Customer Service Operations Administration Finance Accounting Water Resources Technical Services SWA Service Accounts Billing/Payments Shut-Offs Service Requests Complaints CRW Service Accounts Billing/Payments Shut-Offs Service Requests Complaints Meter Reading SWA Operations Maintenance Work orders Construction Repairs CRW Operations Maintenance Work orders Construction Repairs Cross Connection Emergency Response Fleet Maintenance Executive Assistant Gov t/public Affairs General Admin. Sunrise CRW Legal Services Human Resources Records Mgmt. Auditing/Reporting Budgeting Accounting General Ledger Payroll A/P Fixed Assets Planning Plant/Treatment Operators Regulatory Compliance Sampling/Reporting Lab Services Conservation Yellow highlights are areas of potential shared resources as outlined in this coordinated operating plan. Yellow highlights with the bold printing are realized shared resources as of March 2016 Education/Outreach Engineering CAD/Drawings Design Standards Hydraulic Modeling Construction Admin. Capital Planning Asset Management IT Services Security Internet/Routers Servers/Hardware Software Telecommunications SCADA GIS/Mapping - 7 -

10 GENERAL FUND BIENNIAL BUDGET BEGINNING JULY 1, 2016 BN BN Budget Change Percentage Budget Proposed Proposed Proposed RESOURCES $ - Beginning Fund Balance $ - $ - N/A 1,580,950 Wholesale Water Sales 1,646,000 65, % 373,500 Interagency Shared Resources 540, , % 389,500 Contributions 198,900 (190,600) -48.9% $ 2,343,950 TOTAL RESOURCES $ 2,385,300 $ 41, % REQUIREMENTS MATERIALS AND SERVICES: $ 1,580,950 Water Purchases $ 1,646,000 $ 65, % 373,500 Interagency Shared Labor 540, , % 37,000 Professional Fees 30,100 (6,900) -18.6% 176,800 Software Licensing 36,400 (140,400) -79.4% 98,700 Operating Supplies 32,500 (66,200) -67.1% - Equipment 28,200 28,200 N/A 12,000 Miscellaneous 21,700 9, % 2,278,950 TOTAL MATERIAL & SERVICES 2,335,300 56, % CAPITAL OUTLAY 15,000 Software - (15,000) % 15,000 TOTAL CAPITAL OUTLAY - (15,000) %. CONTINGENCY 50,000 Operating Contingency 50, % 50,000 TOTAL CONTINGENCY 50, % $ 2,343,950 TOTAL REQUIREMENTS $ 2,385,300 $ 41, % CRWSC was formed December 21,

11 GENERAL FUND - RESOURCES ADOPTED FISCAL YEAR FISCAL YEAR PROPOSED TOTAL Wholesale Water Sales $ 1,542,950 SWA $ 795,000 $ 811,000 $ 1,606,000 38,000 NCCWC 20,000 20,000 40, ,800 Interagency Shared Resources 265, , ,400 Contributions 149,250 Sunrise Water Authority 50,900 48,550 99, ,250 Clackamas River Water 50,900 48,550 99,450 $ 1,997,250 TOTAL RESOURCES $ 1,182,400 $ 1,202,900 $ 2,385,300 Wholesale water sales includes a 2 percent inflation for pricing of wholesale water without an increase in consumption. Interagency shared labor is based on work assignments as of Spring Clackamas River Water shares more labor resources with Sunrise Water Authority than the reverse. Currently under contract are the following posisitons: Finance Director, HR Manager, Emergency Preparedness Manager. Additional labor resources include: water sampling for testing, system flushing, procurement and contract management, board support, government relations liasion, engineering services, GIS/drafting, hydraulic modeling, SCADA technician and pump station maintenance. Contribution by both agencies for shared expenses of the Commission. Examples include but not limited by: auditor fees, travel expenditures, general liability insurance, Commission dues or memberships, and sharing of software licensing for SCADA and network services

12 GENERAL FUND - REQUIREMENTS ADOPTED FISCAL YEAR FISCAL YEAR PROPOSED TOTAL MATERIALS AND SERVICES $ 1,580,950 Water Purchases $ 815,000 $ 831,000 $ 1,646,000 Interagency Shared Labor 28,200 Water Quality 19,300 20,000 39, ,100 Administration 73,200 75, , ,300 Technical Services 70,800 73, ,100 44,400 Field Operations 16,700 17,300 34,000 65,500 Business Operations 85,600 88, ,000 Professional Fees 10,000 Accounting & Audit 5,300 5,300 10,600 5,000 Legal 1,300 1,300 2,600 20,000 Insurance 6,700 6,700 13,400 2,000 Bank Fees ,000 - Temp help/support 2,500-2,500 Software Licensing 91,000 Finance and Billing (Springbrook) ,000 GIS (ESRI) ,000 SCADA (Wonderware) 6,200 6,200 12,400 15,000 H Modeling (Infowater) Emergency Mgt (Bold) 3,300 3,300 6,600 9,800 Records Management 1,800 1,800 3,600 - IT Services and website 6,900 6,900 13,800 Equipment - Emergency drill - Rental & Tools 2,800-2,800 - Computer hardware/software 2,000 2,000 4,000 Server hosting / montioring 10,700 10,700 21,400 Miscellaneous 6,000 Public Notices 1,500 1,500 3,000 6,000 Commission expenses 1,200 1,200 2,400 - Dues and Memberships 3,800 3,900 7,700 - Training 4,300 4,300 8,600 Operating Supplies 50,000 Gravel ,000 Chemicals ,000 Equipment rental 5,000 5,000 10,000 18,700 Laboratory Services 11,000 11,500 22,500 2,278,950 TOTAL MATERIALS & SERVICES 1,157,400 1,177,900 2,335,300 CAPITAL OUTLAY 15,000 Software ,000 TOTAL CAPITAL CONTINGENCY 50,000 Operating Contingency 25,000 25,000 50,000 50,000 TOTAL CONTINGENCY 25,000 25,000 50,000 $ 2,343,950 TOTAL REQUIREMENTS $ 1,182,400 $ 1,202,900 $ 2,385,

13 GENERAL FUND - REQUIREMENTS Water Purchases - $1,646,000 Water purchases are for Sunrise Water Authority or North Clackamas Regional Water Commission to purchase wholesale water from Clackamas River Water for their retail customers. Water purchases are budgeted at similar level as the prior budget. Interagency Shared Labor - $540,400 Intereagency Shared Labor is staff support of agency or CRWSC activity. SWA is budgeted to provide support for: board activites, governmental regulation activity, inspection, and IT support services. CRW is budgeted to provide support for: financial services, human resources, emegerency preparedness, pump station maintenance, SCADA, water quality sampling and testing, system flushing, hydraulic modeling, GIS/CAD, engineering and design, inspection and IT support sevices. The level of service is expected to be similar to the second year of the prior budget. Professional Fees - $30,100 Professional Fees are budgeted at a similar level at the prior budget with the exception of temporary support to complete special projects Software Licensing - $36,400 This budget includes software licensing and maintenance agreements shared by both agencies for SCADA, Emergency Prepareness Management, firewall and other IT support, and records management. This budget is reduced from the prior budget as advantages for sharing the licensing or maintenance agreement were not found for some agreements. Equipment - $28,200 This budget includes a small amount for equipment purchases or rental. A planned shared emergency preparedness drill will rent small equipment not available from our stock. Computer harware/software is included as some purchaes are made at one agency but then used at the other agency. Server hosting and monitoring for CRW to provide service to SWA for shared servers. Miscellaneous - $21,700 Miscellaneous includes dues and membership, public notices, shared training expense, and comissioner expenses. Dues and memberships include Water Research Foundation, Chamber of Commerce, SDAO and professional organization memberships for shared staff. Publice notices for budget meetings, hearings, and commission meetings. Shared training expenses when shared staff attend seminars or conferences or when an opportunity for both agencies to attend required courses. Operating Supplies - $32,500 Operating Supplies for this budget is reduced from the prior budget as advantages for sharing of some purchases were not found for some items. Laboratory services will continue at a level similar to the prior budget and is for Clackamas River Water to provide this service to Sunrise Water Authority. Equipment rental is for sharing of equipment between agencies

14 GENERAL FUND - REQUIREMENTS CAPITAL OUTLAY - $0 Captial Outlay is not included in this budget. No large shared puchases are planned during this budget period. CONTINGENCY - $50,000 Contingency is for unplanned and unanticapated expenses. The use of these funds is restricted and requires Board action to move funds to another category prior to use of the funds

15 Schedule of Revenue & Expenditures Budget and Actuals Year to Date through February 29, Budget Original Final Actual Results First Year FY Second Year Actual % of budget FY TOTAL Variance to Final Budget Over (Under) GENERAL FUND Revenues: Water Sales $ 1,580,950 $ 1,580,950 $ 795, % $ 536,677 $ 1,332,183 $ 248,767 Interagency Labor Revenue 373, , , % 180, ,033 39,467 Total Revnues: 1,954,450 1,954, , % 717,387 1,666, ,234 Other Financing Sources: - - Contributions 389, , , % 61, , ,208 Total Revenue and Other Financing 2,343,950 2,343,950 1,069,310 Sources 45.6% 779,198 1,848, ,442 Beginning Balance N/A TOTAL RESOURCES $ 2,343,950 $ 2,343,950 $ 1,069, % $ 779,198 $ 1,848,508 $ 495,442 Expenditures Materials & Services Water Purchases $ 1,580,950 $ 1,580,950 $ 795, % $ 536,677 $ 1,332,183 $ 248,767 Interagency Shared Labor 373, , , % 153, ,697 72,803 Professional and Fiscal Fees 37,000 37,000 9, % 42,937 52,249 (15,249) Software Licensing 176, , , % 38, ,020 32,780 Opeating Supplies 98,700 98,700 2, % 3,196 6,051 92,649 Miscellaneous 12,000 12,000 9, % 3,626 13,307 (1,307) Total Materials & Services 2,278,950 2,278,950 1,069, % 779,198 1,848, ,442 Captial Outlay Software 15,000 15,000 - N/A ,000 Total Capital Outaly. 15,000 15,000 - N/A ,000 Contingency Operating Contingency 50,000 50,000 - N/A ,000 Total Expenditures 2,343,950 2,343,950 1,069, % 779,198 1,848, ,442 Unappropriated Ending Fund Balance N/A $ 2,343,950 $ 2,343,950 $ 1,069, % $ 779,198 $ 1,848,508 $ 495,